From AFX News Limited

LUDWIGSBURG , Germany -- German automotive supplier Beru AG said it will cut about 160 jobs to halt sliding profitability due to ballooning raw material and personnel costs.

The job cuts, half of which will be at Beru's four German sites, will result in a charge of about $4.3 million.

The job cuts and other "streamlining" measures will result in annual savings of about $3 million next year, which will increase to almost $7.2 million a year in the medium term, Beru said in a statement.

"In connection with the revenue growth anticipated as of 2009 due to the launch of new p rod ucts, the Executive Board assumes that the measures now initiated will stop the negative development of profit margins and have a sustained positive effect on competitiveness so that jobs can be secured in the long term," Beru said in the statement.

The company also said management board member Rainer Podeswa, who has been overseeing sales as well as research and development, has left the company "by mutual agreement."

Beru in September slashed its full-year EBIT (earnings before interest and tax) guidance to $64-$68 million from $68-$72 million due to difficulties in the automotive industry.

The company posted nine-month sales of $479.6 million, up only 1.7 percent from the year-earlier period.

In its largest business segment, diesel cold start technology, Beru suffered a sales decline of almost 12 percent to $175.4 million from $199.1 million due to fierce competition.

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